The State as a Vehicle of Technological Change: Economic Openness, Technological Catching-up, and Indigenous Innovation in Chinese Firms

The global integration of capital and technology generates a pressing debate on how technologically backward countries can benefit from FDI , and catch up technologically. This study identifies the mechanisms in the triangle of globalization-state-firm accounting for firms’ indigenous innovations. Specifically, I test three types of the state’s roles—the state’s infrastructure-building, partnership with the firm, and direct intervention into...